The Commerce Commission has filed High Court proceedings against finance company Linsa Finance Limited, seeking orders that it return costs of borrowing totalling about $680,000 for more than 1,700 loan contracts.
The Commission is also seeking, in the alternative, that Linsa Finance pays statutory damages to affected borrowers.
Linsa Finance has offices in Manurewa and Tauranga, offering secured and unsecured personal loans of up to about $4,000.
The Commission alleges that between 6 June 2015 and 29 March 2016 Linsa Finance’s loan contracts failed to include some of the key disclosure information required under the Credit Contracts and Consumer Finance Act 2003 (CCCFA). The alleged deficiencies affected 1,721 loan contracts.
Failure to disclose the key information means that borrowers are not liable to pay interest or credit fees charged by the lender during the period of non-compliance.